Apple to launch iPhone-based money transfer service, reports tech site

Apple Pay in America

Apple has held talks with payments industry partners about launching a money-transfer service, according to technology news website Recode, allowing iPhone owners to transfer money digitally to other iPhone users. Apple will announce the new service later this year, one source told Recode, while another told the website an announcement and launch date may not yet be set.

The service, if launched, would compete with digital money transfer services such as PayPal’s Venmo, Square Inc’s Square Cash, as well as services from banks. Apple was also in talks with Visa to create its own pre-paid cards to run on the Visa debit network and tied to the new peer-to-peer service, the Recode report said.

Apple is looking for ways to boost use of Apple Pay, its mobile payments service, which has been lighter-than-expected since its launch two and a half years ago, according to sources at some of the major US banks. Apple has so far declined to comment on the report.